Title
Staff Report for Resolution Approving Adjustments to City Fees and Service Charges for 2012-13
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends the City Council approve the proposed adjustments to City user fees and service charges in the Master Fee Schedule for 2012-13. Following the Finance Committee approval, this resolution is being presented to the City Council for approval as part of the 2012-13 budget approval process.
BACKGROUND
The City conducts a review of all user fees and service charges as part of its annual budget preparation process. City user fees and service charges are based on a variety of criteria including comparable fee levels in surrounding cities; changes in the local Consumer Price Index (CPI); and the cost to provide the associated service. If approved by the Finance Committee and adopted by the City Council, the following proposed adjustments to the City’s user fees and service charges would be effective July 1, 2012.
The Master Fee Schedule is a compilation of City Council approved fees for special services requested by some residents in the community. Local agencies are allowed to set fees at rates that obtain fair and reasonable recovery of the costs incurred by the General Fund in providing a special service; thereby minimizing or eliminating the use of limited General Fund revenues. Historically, the City has strived to maximize cost recovery through setting fees at levels appropriate given escalating costs of doing business and market comparisons.
Full cost recovery is a policy direction by the City Council and the fee schedule that maximizes cost recovery opportunities through appropriate fee revenues is a critical component of the City’s on-going financial stability. In the 2012-13 General Fund Budget, the proposed estimated department revenues total $4,000,000 or approximately 5% of the General Fund operating revenues. Modifications to the City’s fee schedule to remain up-to-date with escalating operating costs are generally completed on an annual basis.
Attached to the resolution accompanying this report is the City of San Leandro Fee Schedule that provides detail of current fees and adjustments, as well as the additions of new fees from the Community Development, Engineering, Police and Recreation departments. The proposed charges and new fees are in the right hand column and are printed in bold and italics.
The following summarizes departmental changes to the fee schedule for 2012-13:
Community Development
• Building Regulations - most fees are increased by the 2.6% CPI change
• Planning
o All fees increased by the 2.6% CPI change
o New fee: Public Convenience or Necessity Determination fee
Engineering & Transportation
• Park facilities development impact fees increased based on shelter component of the CPI factor (2.6%) or the Engineering News Report (ENR) construction cost index (1.9%)
• Overhead utility conversion increased by ENR for underground utilities factor (8.36% to 8.5%)
• Traffic division increases by ENR factor (0.9%)
• New fee: City Property Use Application fee - Direct Costs
Finance - no change to fees, enhanced descriptions
Fire - All fees are increased by the 2.6% CPI change
Library - no change to fees
Police
• Vehicle release fee increased from $175 to $200 based on costs of providing services and comparable fees charged in Alameda County cities
• Municipal Code violations (1st, 2nd and 3rd) added to comply with SLMC 1-12-200
• Peddler/Solicitor/Itinerant Merchant fingerprint/background fees:
o $32 charge for fingerprint and background check to comply with SLMC 4-5-205(f); plus
o $20 for Police Department Administrative Fee
Public Works
• Equipment Rental fees are modified based on current vehicle valuation
• Marina fees:
o Berth rentals are increased by 5% as allowed by the Department of Boating and Waterways loan agreement, Article VI, section 5 (C)
o Security live aboard permit increased from $150/month to $157.50/month based on the 5% as allowed by the Department of Boating and Waterways loan agreement
• Environmental Services:
o Most fees increased by the 2.6% CPI increase
o Updated labor related fees to reflect the increased time required to furnish services.
• Wastewater Discharge Service fees increased in accordance with City Council Resolution 2010-069, June 21, 2010, adopting wastewater discharge rates as published in the notice of proposed sewer and wastewater treatment rates for 2010-11 through 2014-15
Recreation and Human Services
• Enhanced descriptions of some fees with no rate change
• Updated kitchen usage rate to a flat rate
• Added fees for Bonaire Park Area 5, and Thrasher Park
• Increased fees for: Marina Park-Seagull Picnic Area, Mulford Point, Root Park, Grover Cleveland Park, Halcyon Park and Stenzel Park
• Decreased Pool buy-out fees and decreased buy-out time from 3 hours to 2 hours
Committee Review and Actions
Fee schedule recommended for approval on April 6, 2012 by the City Council Finance Committee
Fiscal Impacts
Staff estimates that the proposed fee will generate $42,000 in additional General Fund revenue and $388,000 in additional Enterprise Fund revenue.
General Fund Fees: Revenues
Community Development/Building $ 31,000
Community Development/Zoning 1,000
Engineering Services 7,000
Recreation - Rentals 3,000
Total General Fund Fees $ 42,000
Enterprise Fund Fees:
WPCP Connection Fees $ 10,000
Sewer Service Rates 350,000
Marina Services 28,000
Total Enterprise Fund Fees $ 388,000
ATTACHMENTS
None.
PREPARED BY: David Baum, Finance Director, Finance Department